Much Higher Deductibles Announced for 2022 by Financial Services Regulatory Authority of Ontario

January 20, 2022, Kitchener, Ontario

Posted by: Robert Deutschmann, Personal Injury Lawyer

Injured survivors of car accidents continue to be punished in Ontario by the insurance system. While the benefits paid out to victims including non-earner benefits and income replacement benefits have not increased in decades the deductibles clawed back by insurers have increased regularly. This year they increased by a stunning 4.4%.

What is the Deductible Amount and Where Does It Come From?

A little known by consumers fact is that if you suffer injuries as a result of a car accident (whether you are the driver or a passenger or in the other car or a pedestrian or cyclist) your compensation for pain and suffering is subject to limitations. One of these limitations is a deductible from the settlement amount.

How does the Deductible Work?

Unlike property insurance where you negotiate the deductible and you pay it out of pocket, deductibles for automobile claims are handled by the insurer of the at fault party. In other words the insurer for the person who caused your injuries by hitting you or your car. That company keeps the first $41,503.50 of your damages for pain and suffering.

This amount is tied to a monetary threshold subject to indexation. The threshold established means that settlements above the amount are not subject to the deductible.  If you had an accident in 2021 the amount was $138,383.86. For settlements reached in 2022, the deductible is $41,503.50.

What does this all mean?

Let’s suppose you are unlucky enough to be injured seriously in a car accident and you are forced to make a claim for pain and suffering in order to protect your and your family’s financial future. If your damages are assessed at $139,900 then you get to keep all of the settlement amount. If your claim is assessed at $130,000 then you will get $130,000 - $41,503.50 = $88,496.50

Why Is This So Unfair?

The insurance company of the person who caused the accident GETS TO KEEP almost $42,000 of your settlement amount.

What is even worse and more unfair, is that if your case goes before a jury trial then the lawyers are NOT PERMITTED to disclose this threshold amount to the jury.

It is also worth repeating that while this deductible limit and threshold are increased yearly, the accident benefits and IRBs have not increased in decades and do not reflect realistic earning amounts for the average person. The insurer wins again.

It is more important than ever to know your rights. Please share this information with your friends and family.

Have you Been Seriously Injured in An Accident?

If you are in an accident and need the services of an experienced personal injury lawyer don’t delay. Call our offices today at Deutschmann Personal Injury and Disability Law 1 (866) 414-4878 for your free initial consultation.

About Deutschmann Law

Deutschmann Law serves South-Western Ontario with offices in Kitchener-Waterloo, Cambridge, Woodstock, Brantford, Stratford and Ayr. The law practice of Robert Deutschmann focuses almost exclusively in personal injury and disability insurance matters. For more information, please visit www.deutschmannlaw.com or call us at 1-519-742-7774.

It is important that you review your accident benefit file with one of our experienced personal injury / car accident lawyers to ensure that you obtain access to all your benefits which include, but are limited to, things like physiotherapy, income replacement benefits, vocational retraining and home modifications.